Cpec Agreement

During Chinese President Xi Jinping`s state visit to Pakistan in April 2015, he wrote in an open editorial: “This will be my first trip to Pakistan, but I feel like I am visiting my own brother`s house.” On April 20, 2015, Pakistan and China signed an agreement to launch work on the $46 billion agreement, which represents about 20% of Pakistan`s GDP,[49] with accelerated “Early Harvest” projects worth about $28 billion by the end of 2018. [50] [51] Minister Iqbal also stated that this was a historic day for Gawadar, as the GWADAR airport grant contract was signed, paving the way for the project to be launched in 2017. In September and October 2015, the UK government announced two separate grants to the Pakistani government for road construction, which complement the CPEC. [56] [57] In November 2015, China adopted the CPEC in its 13th Five-Year Development Plan,[58] while China and Pakistan agreed in December 2015 to invest an additional $1.5 billion for the creation of an information and technology park under the CPEC project. [59] On April 8, 2016, Xinjiang Communist Party companies Zhang Chunxian signed additional $2 billion in infrastructure, solar and logistics agreements with their Pakistani counterparts. [60] The first infrastructure work at the Port of Gwadar began in 2002 and was completed in 2007,[43] but plans to modernize and expand the port of Gwadar have stalled. Under the CPEC agreement, the port of Gwadar will initially be expanded and modernized to allow for the mooring of larger vessels of up to 70,000 vessels. [70] Improvement plans also include the construction of a $130 million loop around the port[71] and the construction of a floating liquefied natural gas facility, with a capacity of 500 million cubic feet of liquefied natural gas per day and connected to the Gwadar-Nawabshah segment of the intermediate gas pipeline in the intermediate country and Pakistan. [72] In May 2016, Indian Prime Minister Narendra Modi and his counterpart signed Iranian President Hassan Rouhani in Tehran a series of twelve agreements in which India proposed to renovate one of the ten existing docks in Chabahar and another wharf, the port of Chabahar,[304] to allow the export of Indian goods to Iran, with the possibility of continuing links to Afghanistan and Central Asia.

[305] In February 2017, the project was further delayed, while the Iranian and Indian governments blamed each other for the delays. [306] India, Iran and Afghanistan have also signed an agreement to simplify transit procedures between the three countries. [311] Despite the explicit desire to bypass Pakistan to strengthen economic relations between Iran and India, Indian goods destined for Iran currently do not require transit through Pakistan, as these goods can be exported to Iran via Bandar Abbas, where India currently has diplomatic representation. [321] Bandar Abbas is also considered an important point of the north-south corridor, supported by India and Russia since 2002. [322] [323] Indian goods may also be imported and transported to Iran upon arrival at Bandar-e Emam Khomeyni, near the Iraqi border.